(U.S. Concrete) TheStreetTV's Gregg Greenberg catches up with our CEO, Bill Sandbrook, about what is driving the construction market. One of the many catalysts for suppliers like U.S. Concrete has been frenetic pace at which the construction industry is trying to catch up with a booming housing market. As it stands, the demand for housing is outpacing the current supply, meaning ample opportunities for companies like U.S. Concrete to provide the supplies for those new residential projects.
In the interview, Greenberg asks Sandbrook how the decline of the energy industry has affected the business, if at all. Sandbrook replies that Dallas has been largely insulated from the decline of the energy industry and is still growing at a surprising clip. Dallas was one of the least affected metropolitan areas (alongside the rest of Texas) and its strong local economy is showing no signs of stopping.
The long-term average for housing, according to Sandbrook, is 1.5 million while the housing starts currently stands at 1.1 million units. U.S. Concrete, then, should see plenty of work on the residential side as infrastructure projects start to increase over the long term.
Only 14 percent of U.S. Concrete's business goes into infrastructure, but the amount of upcoming projects is projected to increase in the coming years, too. To accomodate for Dallas' swelling population growth, U.S. Concrete will be gearing up to supply highway projects that will be necessary for reliable transportation.
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